HWT Plc uses a standard costing system and maintains its material stock account at standard costs. The standard cost card reveals a requirement of 8kg of material at $0.80/kg. The Budgeted production for September was 850 units. The actual production was recorded at 870 units. 8200kg of materials were purchased costing $6888. Material issued to production was 7150kg. Which of the following correctly states the material price and usage variances to be reported?

An unfavourable materials quantity variance would occur if...

Which of the following is most likely to be the reasons for a favourable material price variance coupled with an unfavourable material usage variance?

A company operates a standard costing system. The following information has been extracted from the standard cost card for one of its bestselling products:

Budget production 1,250 units

Direct material cost [7kg@£4.2/kg] £29.40/unit

Actual results for the period show that production was 1,200 units. Direct material purchased and used was 7,300kg costing £33,880 in total.

The value of the material usage variance is

A company uses standard costing. It purchases a type of small component to add on to its production. The component is normally expected to cost £0.85 per unit. In May, the quantity actually purchased is 6,800 units, though the standard allowance for actual production is 5,440 units. If the accountant reports an adverse purchase price variance of £544, then the actual purchase price per unit must have been 

A company has a standard requirement of 3 kg of direct materials at RM5 per kg for its product. Last year, 2,000 kg of the direct materials were purchased for RM9,700.  The direct materials price variance for that year was

Readings on the usefulness of standard costing and variance analysis